La Liga has warned that the Premier League's loss-making model is creating a financial bubble, and La Liga executive Mata-Alonso states that without intervention from the British government, some Premier League clubs will disappear.

Every summer, the Premier League dominates the transfer market, leveraging substantial financial resources to strengthen squads at exorbitant prices. La Liga argues that this model—completely opposed to Spain's approach—is creating a bubble that could burst at any moment and impact all European leagues.

La Liga executive Mata-Alonso told "AS" that "if the British government does not act, some Premier League clubs will disappear." The English game generates the highest revenues. According to the latest "Deloitte Football Finance 2026" report, La Liga's revenues are approximately 4.1 billion euros, while the Premier League's approach 8 billion euros, reaching 7.979 billion euros.

La Liga president Javier Tebas has repeatedly stated that English clubs should not spend more than double what Spanish clubs spend in the transfer market, but this guideline is not being followed. La Liga's annual spending typically hovers around 800 million euros, while the Premier League spent 4.062 billion euros in the 2025-26 season, with 2.868 billion euros already spent this season. Tebas calls this "excess." The problem is that English clubs are financing this out-of-control spending through a loss-making model.

According to a La Liga report, Premier League clubs collectively lost 2.027 billion euros in the 2024-25 season, with losses covered only by club shareholders. This does not happen in Spain, where capital expansion is restricted and strict financial regulations prevent the loss-making model that nearly destroyed Spanish football years ago.

Mata-Alonso told "AS" about the Premier League's model: "The Premier League's financial controls are equivalent to what La Liga had 15 years ago. Clubs do whatever they want during the season and are only audited after it ends. As Tebas said, this is like confirming death; the patient cannot be saved."

He then highlighted a fundamental flaw in the Premier League's financial fair play rules: "The foundation is problematic; it does not control transfer prices. They have added some new modifications, which we don't believe will succeed. They've set a squad spending ratio based on revenues. The ratio for clubs competing in European competitions is around 70%, while other clubs can reach 80%-90%."

He continued: "The Premier League allows them to spend more and permits greater losses, which increases the risk that the league loses control or even collapses. The 80% threshold means you can spend more on your squad, but non-squad expenses still exist—structural costs. So your total spending could reach 120% or even 130% of your revenues. What they're saying is that clubs not in European competitions with lower revenues can lose more than those that are."

To make balance sheets appear healthier, Alonso warns about opportunities for manipulation: "Shareholder sponsorships could appear as revenues, and these sponsorships might not all be at market value. We're concerned that player transfer revenues will also be included in revenue calculations. This will inflate transfer prices. The more you sell and the higher the prices, the better your squad spending percentage looks. Transfer fees will be inflated and player swaps will increase. While this stays within the Premier League, if the market is purely domestic, clubs will cannibalize each other, but this impact will extend to other leagues."

This situation is already emerging. This summer's most expensive transfer was Morgan Rogers, for whom Chelsea paid 138 million euros—53.33% above his market value. Another example is Matheus Fernandes, for whom Tottenham paid 98% above his Transfermarkt valuation. To balance their books, Premier League clubs will seek to sell players at inflated prices, with many deals occurring between English clubs. "This is what we call player swaps," said Alonso. "I spend 10 to buy your player, and you spend 10 to buy my other player. In the end, everyone writes 100 on the books, everyone is happy, and you can show a 100 profit. This happened in Italy and later led to criminal charges because it distorts the market."

He went on to explain the hidden dangers of the Premier League model: "If you buy a player at a very high price, it creates amortization costs. If you later sell him, it results in a loss for the club. This is like drinking poison to quench thirst; it's not a sustainable way to run a club. Remember, they already lost 2 billion euros last season. What we want to do now is push the Premier League to correct this deviation, because it's dragging everyone down with it."

Nevertheless, La Liga has warned for years that England's loss-making model is unsustainable, constantly reminding them that "the wolf is coming," but the wolf hasn't arrived yet. However, La Liga insists that consequences will eventually surface, and some already have: "There hasn't been a complete crisis yet, but we're convinced it will happen. Look, there have been numerous club ownership changes in the Premier League in recent years. New shareholders come in, the club loses money, they cover it initially, then sell to the next shareholder to recover their investment. But in recent seasons, even the Saudi sovereign wealth fund has stopped buying Premier League clubs. One day, shareholders will realize they've invested more and more money but can no longer recoup their investment because no one will buy their club. In the last two or three seasons, English club acquisitions have slowed significantly, which will cause owners to tighten their spending."

He added: "If a club is neither healthy nor able to cover its expenses with its own revenues, it will collapse. The British Parliament has recognized this. There have been warning signs for clubs relegated from the Premier League to the Championship. Once they drop to the second division, shareholders lose interest and leave." The real consequences will then follow: "If a club is relegated and shareholders abandon it, it will go bankrupt. From a financial fair play perspective, the British government's statement gives the impression they'll allow these losses and unsustainability to continue just to save clubs. I believe if the British Parliament intervenes and regulates as they say they will, these consequences will be corrected sooner. Otherwise, clubs will disappear from the Premier League." The threat is real, yet English clubs continue to spend recklessly in the transfer market.

Tradotto dall'IA.

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